Too many investors and founders still have a narrow view of where innovation happens. Silicon Valley, London, maybe Singapore…and they’re missing out on a massive wave of opportunity. I’m talking about venture building specifically tailored to the Global South – building scalable businesses that solve real problems for these often-underserved markets.
Why the Global South Matters
- The Talent Pool is Huge: Highly-educated, ambitious young people who are hungry for something beyond joining a multinational or the brain drain of moving to the West.
- Leapfrog Opportunities: Markets without entrenched legacy systems are ripe for disruption. Think mobile payments taking off in Kenya BEFORE widespread credit card adoption.
- Necessity = Innovation: Resource constraints and infrastructural challenges force a level of scrappiness that’s rare in developed markets. These founders excel at doing more with less.
- Impact + Returns: Yes, you can do well by doing good. Solving problems like access to financial services, clean water, etc., aligns with increasing impact investor interest.
Unique Challenges (The Hype is Real, So Are the Difficulties)
- Regulatory Uncertainty: Rules around data privacy, fintech, etc., are often in flux. You need strong local partners to navigate this landscape.
- “Reverse Innovation” is Key: Simply porting over a Silicon Valley model won’t work. Solutions need to be tailored to local context, from pricing to user interface design.
- Capital Isn’t Just Cash: Mentorship, introductions to potential customers, and operational expertise are often more scarce than pure funding in these ecosystems.
- Understand the Power Imbalance: It’s vital to approach partnerships with humility, not a colonial savior mentality. True success is about empowering local entrepreneurs.
Where to Look for Opportunity
- The “Boring but Essential” Sectors: Agtech, logistics, healthcare delivery – these lack the sex appeal of AI, but have massive potential impact and scalable business models.
- B2B, Not Just B2C: Businesses are often desperate for better tools, and are willing to pay, even in markets where consumer discretionary spending is low.
- The Diaspora Connection: Tap into networks of successful entrepreneurs from the Global South who have relocated. They bring market insights and can act as bridges for your venture.
Are you building (or investing in) ventures in the Global South? Share your successes and hard-won lessons in the comments!
